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CaHeK987 [17]
3 years ago
12

UBS buy-side analyst Christopher Dixon is following a mature telecommunications company TFI Inc in 2016. UBS estimates 1.5 for T

FI’s beta, risk-free rate equals 5% with equity risk-premium of 8%. Which of the following is closest to the required return on equity? 16% 15% 14% 17%
Business
1 answer:
Pachacha [2.7K]3 years ago
3 0

Answer:

The required return on equity is 17%.

Explanation:

The required rate of return is the minimum return required by the investors to invest in a stock. The required rate of return is calculated under the CAPM approach based on the the stock's beta, the risk free rate and the market risk premium. The formula for the required rate of return is,

r = rRF + beta * rpM

r = 0.05 + 1.5 * 0.08

r = 0.17 or 17%

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ludmilkaskok [199]

Answer:

The correct answer is (D) all, maximizes her total utility.

Explanation:

Consumer's equilibrium is a defined as a situation in which an individual uses his or her money to buy goods in a manner in which the person obtains the highest satisfaction and has no need for a change in the level of consumption on account of the price of the product.

Consumer equilibrum enables an individual to obtain complete satisfaction from his or her money. Consumer equilibrum is found by comparing the ratio of the marginal utility to the price of a commodity.

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The maximum commonplace supply of adjustments to a venture primarily based on the natural tendency of the client and assignment crew members to improve the mission’s output is called Scope creep.

The definition of a purchaser method is a client or someone who makes use of services. An example of a purchaser is a pupil being tutored at a university writing middle. (Ancient) someone depending on every other, for protection or patronage. A terminal or non-public laptop that is connected to a server.

A purchaser is someone who buys services or products from a corporation, even as a client refers to a sure type of client who purchases professional services from an enterprise. typically speak me, customers purchase products at the same time as customers purchase recommendations and solutions.

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6 0
2 years ago
In the summer, ben often jogs during the middle of the day. when he exercises in these conditions, he sweats heavily. the recomm
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3 years ago
Suppose the price of tomatoes falls, ceteris paribus. Describe the impact the substitution effect and the real income effect wou
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Answer:

Ceteris paribus assumption: Demand curves relate the prices and quantities demanded assuming no other factors change

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Ceteris paribus is a  Latin phrase meaning “other things being equal”. If all else is not held equal, then the laws of supply and demand will not necessarily hold.

Demand is the amount of some product a consumer is willing and able to purchase at each price.

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A substitute is a good or service that can be used in place of another good or service. A lower price for a substitute decreases demand for the other product and increases the quantity demanded for tomatoes

A change in the price of a good or service causes a movement along a specific demand curve, and it typically leads to some change in the quantity demanded, but it does not shift the demand curve.

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